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FNCB Bancorp, Inc. Announces Earnings for 2017, Reflecting Federal Tax Law Changes

Company Release - 1/31/2018 5:09 PM ET

DUNMORE, Pa., Jan. 31, 2018 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (OTCQX:FNCB) (“FNCB”), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $0.1 million, or $0.01 per basic and diluted share, for 2017, compared to net income of $6.3 million, or $0.38 per basic and diluted share, for 2016. For the fourth quarter of 2017, FNCB recorded a net loss of $6.1 million, or $0.36 per basic and diluted share, compared to net income of $1.5 million, or $0.09 per basic and diluted share, for the same quarter of 2016. During the fourth quarter of 2017, FNCB recognized additional, non-recurring income tax expense of $8.0 million resulting from the revaluation of FNCB’s net deferred tax assets following the enactment of the Tax Cuts and Jobs Act (the “Act”) on December 22, 2017. For the year ended December 31, 2017, FNCB’s adjusted net income, which excludes the non-recurring income tax expense related to the revaluation of FNCB’s net deferred tax assets, was $8.1 million, or $0.49 per basic and diluted share, compared to $6.3 million, or $0.38 per basic and diluted share, in 2016, an improvement of $1.8 million, or 29.2%. For the fourth quarter of 2017, adjusted net income, excluding the non-recurring income tax expense related to revaluation of the net deferred tax assets was $1.9 million, or $0.11 per basic and diluted share, an improvement of $0.4 million, or 24.2%, from $1.5 million, or $0.09 per basic and diluted share, for the same quarter of 2016.

On December 22, 2017, President Trump signed the Act into law, which, among other things, reduced the corporate statutory tax rate from a maximum corporate income tax rate of 35% to 21% effective January 1, 2018. Generally accepted accounting principles required FNCB, upon enactment of the Act, to revalue its net deferred tax asset, resulting in an $8.0 million reduction in their value. This non-cash, non-recurring valuation adjustment has been recorded as additional income tax expense in the fourth quarter of 2017. Going forward, FNCB expects to benefit from the lower corporate income tax rate.

2017 HIGHLIGHTS

  • FNCB Bancorp, Inc. named to the 2018 OTCQX Best 50 list.
  • Dividends declared for 2017 totaled $0.13 per share, an increase of 44.4% compared to $0.09 per share for 2016.
  • Net interest income increased $2.5 million, or 8.2%, to $33.0 million in 2017 from $30.5 million in 2016.  
  • Net loans grew $38.7 million to $761.6 million at December 31, 2017 from $722.9 million at December 31, 2016, an increase of 5.4%.
  • Non-performing assets decreased $0.9 million, or 14.6%, from $6.4 million at December 31, 2016 to $5.5 million at the close of 2017.
  • FNCB accelerated the payment of $5.0 million in principal on the subordinated debt due September 1, 2018 to September 1, 2017.

“Our strong operating performance continued through the fourth quarter illustrated by solid organic loan and deposit growth, improved earning asset yields and a continued focus on improving efficiency and maintaining stable non-interest expense levels,” said Gerard A. Champi, President and Chief Executive Officer. “Although FNCB recognized a significant one-time, non-cash charge in the fourth quarter of 2017 relating to the revaluation of its net deferred tax assets as a result of the enactment of the new tax law, fourth quarter and 2017 adjusted net income, excluding this charge, were up significantly, and we believe FNCB will realize significant future benefit from the recent tax law changes that are well in excess of the related one-time charge recognized in the fourth quarter of 2017. Importantly, the partial write-down of FNCB’s deferred tax assets had no significant impact on FNCB’s regulatory capital ratios, liquidity, or its ability to continue to pay regular cash dividends. We’re excited by the anticipated positive and ongoing earnings impact that we believe FNCB will recognize in the future from the Tax Cuts and Jobs Act of 2017, and we believe that the reduction in corporate income tax rates will accelerate our efforts to build value for FNCB shareholders.”

For the fourth quarter and year ended December 31, 2017, dividends declared and paid were $0.04 and $0.13 per share, respectively. In comparison, dividends declared and paid for the fourth quarter and year ended December 31, 2016 were $0.03 per share and $0.09 per share, respectively. The closing price of FNCB’s common stock was $7.30 per share at December 31, 2017, an increase of $1.25 per share from the closing price of $6.05 per share at December 31, 2016. The price appreciation, combined with dividends declared, equated to a total return for shareholders of 22.8% for 2017.

Return on average assets and return on average shareholders’ equity were 0.01% and 0.15%, respectively, in 2017. For the three months ended December 31, 2017, return on average assets and return on average shareholders’ equity were (2.09%) and (24.98%), respectively. Return on average assets was 0.55% and 0.57%, respectively, and return on average shareholders’ equity was 6.43% and 6.82%, respectively, for the three months and year ended December 31, 2016.

Summary Results for 2017

For the three months ended December 31, 2017, net interest income increased $1.1 million to $8.8 million compared to $7.7 million for the same period of 2016. FNCB’s tax-equivalent net interest margin improved 24 basis points to 3.35% for the fourth quarter of 2017 from 3.11% for the same quarter of 2016. For the year ended December 31, 2017 net interest income increased $2.5 million, or 7.9%, to $33.0 million in 2017 from $30.5 million in 2016. The tax-equivalent net interest margin widened 10 basis points to 3.23% in 2017 from 3.13% in 2016. The margin improvement for both the fourth quarter and year ended December 31, 2017 reflected strong growth in earning assets, coupled with increases in earning asset yields, partially offset by increases in FNCB’s cost of funds.

For the fourth quarter of 2017, non-interest income increased $0.5 million to $1.9 million from $1.4 million for the same quarter of 2016. The 37.2% increase was largely due to an increase in other income of $0.3 million and net gains on the sale of investment securities of $0.3 million in the fourth quarter of 2017. For the year ended December 31, 2017, non-interest income increased $1.0 million, or 16.5%, to $7.2 million from $6.2 million for the year ended December 31, 2016. Similarly, the yearly improvement primarily reflected a $0.6 million, or 66.4%, increase in net gains on the sale of securities, coupled with a $0.4 million increase in other income.

Non-interest expense for the three months ended December 31, 2017 increased $0.6 million, or 8.9%, to $7.8 million from $7.2 million for the same period of 2016. The increase primarily resulted from a $0.4 million increase in other expenses, coupled with higher salaries and employee benefits, occupancy expense, data processing costs and professional fees. For the year ended December 31, 2017, non-interest expense increased $0.5 million, or 1.9%, to $28.1 million compared to $27.5 million for the year ended December 31, 2016.

Asset Quality

Total non-performing assets decreased $0.9 million, or 14.6%, to $5.5 million at December 31, 2017 from $6.4 million at December 31, 2016. The improvement was primarily due to reductions in other real estate owned and other non-performing assets of $1.0 million and $0.3 million, respectively, comparing December 31, 2017 and 2016. Partially offsetting these decreases was a $0.3 million increase in non-accrual loans to $2.6 million at December 31, 2017 from $2.2 million at December 31, 2016. Despite the increase in non-accrual loans, FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) improved to 0.72% at December 31, 2017 from 0.81% at the end of 2016.

The ratio of non-performing loans to total loans was 0.34% and 0.31% at December 31, 2017 and 2016, respectively. The allowance for loan and lease losses as a percentage of total loans was 1.17% at December 31, 2017 compared to 1.15% at the end of 2016. Net charge-offs as a percentage of average loans outstanding for the year ended December 31, 2017 was 0.02%, compared to 0.21% for the year ended December 31, 2016.

Financial Position

Total assets decreased $33.3 million, or 2.8%, to $1.162 billion at December 31, 2017 from $1.196 billion at December 31, 2016. Loans, net of net deferred loan costs and unearned income grew $39.4 million, or 5.4%, to $770.6 million at December 31, 2017 from $731.3 million at December 31, 2016. In addition, securities available for sale increased $14.4 million, or 5.2%, to $290.4 million at December 31, 2017 from $276.0 million at the end of 2016. Total deposits decreased $12.7 million, or 1.3%, to $1.002 billion at December 31, 2017 from $1.015 billion at December 31, 2016. The decrease in total deposits reflected cyclical deposit trends of public funds, coupled with the anticipated exit of short-term funds in the first quarter of 2017 that were received at the end of 2016 related to the sale of a municipal utility. Despite the decrease from year-end 2016, FNCB experienced strong growth in both non-interest bearing and interest-bearing deposits throughout the remainder of 2017. Total deposits grew $79.0 million, or 8.6%, from $923.4 million at March 31, 2017.

Total shareholders’ equity was $89.2 million at December 31, 2017 compared to $90.4 million at December 31, 2016. The $1.2 million reduction was due primarily to dividends declared and paid of $2.2 million, partially offset by common shares issued through the dividend reinvestment and optional cash purchase plans of $0.4 million and stock-based compensation of $0.3 million.

FNCB’s total risk-based capital ratio and the Tier 1 leverage ratio were 12.08% and 7.74%, respectively at December 31, 2017, a slight improvement compared to 12.06% and 7.53%, respectively, at December 31, 2016. The ratios exceeded the 10.00% and 5.00% required to be well capitalized under the prompt corrective action provisions of the Basel III capital framework for U.S. Banking organizations.

Non-GAAP Financial Measures

This release references adjusted net income, which is a non-GAAP financial measure. Adjusted net income represents net income, excluding the $8.0 million non-recurring additional income tax expense resulting from the revaluation of FNCB’s net deferred tax assets required by the change in the statutory corporate income tax rate effective January 1, 2018. Management believes this presentation provides the reader with supplemental information that gives a more concise understanding of the impact from the required revaluation of deferred tax assets and facilitates period-to-period comparisons.

Availability of Filings

Copies of FNCB’s most recent Annual Report on Form 10-K and Quarterly Reports on form 10-Q will be provided upon request from: Shareholder Relations, FNCB Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. FNCB’s SEC filings including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are also available free of charge on the Investor Relations page of the FNCB’s website, www.fncb.com, and on the SEC website at: http://www.sec.gov/edgar/searchedgar/companysearch.html

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 100 years, FNCB Bank continues as Northeastern Pennsylvania’s premier community bank – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB operates through 18 branch offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to the communities it serves with an on-going mission to be: Simply a better bank. For more information about the BauerFinancial 5-Star rated FNCB, visit www.fncb.com.

INVESTOR CONTACT:
James M. Bone, Jr., CPA
Executive Vice President and
Chief Financial Officer
FNCB Bank
(570) 348-6419
james.bone@fncb.com

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained in our filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications, which are made in good faith by us pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control).  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements.  The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services; the ability of FNCB to compete with other institutions for business; the composition and concentrations of FNCB’s lending risk and the adequacy of FNCB’s reserves to manage those risks; the valuation of FNCB’s investment securities; the ability of FNCB to pay dividends or repurchase common shares; the ability of FNCB to retain key personnel; the impact of any pending or threatened litigation against FNCB; the marketability of shares of FNCB and fluctuations in the value of FNCB’s share price; the effectiveness of FNCB’s system of internal controls; the ability of FNCB to attract additional capital investment; the impact of changes in financial services’ laws and regulations (including laws concerning capital adequacy, taxes, banking, securities and insurance); the impact of technological changes and security risks upon our information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of FNCB at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in FNCB’s filings with the SEC.

FNCB cautions that the foregoing list of important factors is not all inclusive.  Readers are also cautioned not to place undue reliance on any forward-looking statements, which reflect management’s analysis only as of the date of this report, even if subsequently made available by FNCB on its website or otherwise.  FNCB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of FNCB to reflect events or circumstances occurring after the date of this report.

Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2016.

[FNCB provides tabular information as follows]


 

FNCB Bancorp, Inc. 
Selected Financial Data 
     
   Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
   2017
 2017
 2017
 2017
 2016
 
Per share data:           
Net income (fully diluted) $(0.36) $0.14  $0.11  $0.13  $0.09  
Cash dividends declared $0.04  $0.03  $0.03  $0.03  $0.03  
Book value $5.32  $5.82  $5.76  $5.58  $5.43  
Tangible book value $5.32  $5.82  $5.76  $5.58  $5.43  
Market value:           
 High $7.99  $8.00  $8.13  $7.50  $6.30  
 Low $6.54  $7.41  $6.35  $6.05  $5.00  
 Close $7.30  $7.57  $7.80  $6.37  $6.05  
Common shares outstanding  16,757,963   16,757,963   16,757,963   16,692,314   16,645,845  
             
Selected ratios:           
Annualized return on average assets  (2.09%)  0.80%  0.65%  0.78%  0.55% 
Annualized return on average shareholders' equity  (24.98%)  9.27%  7.60%  9.77%  6.43% 
Efficiency ratio  73.42%  65.09%  72.81%  74.08%  77.25% 
Tier I leverage ratio  7.74%  8.10%  7.99%  7.55%  7.53% 
Total risk-based capital to risk-adjusted assets  12.08%  12.17%  12.53%  12.38%  12.06% 
Average shareholders' equity to average total assets  8.35%  8.61%  8.49%  7.97%  8.50% 
Yield on earning assets (FTE)  3.84%  3.77%  3.66%  3.47%  3.53% 
Cost of funds  0.59%  0.59%  0.53%  0.48%  0.49% 
Net interest spread (FTE)  3.25%  3.18%  3.13%  2.99%  3.03% 
Net interest margin (FTE)  3.35%  3.27%  3.21%  3.07%  3.11% 
Total delinquent loans/total loans  0.72%  0.81%  0.94%  0.75%  0.81% 
Allowance for loan and lease losses/total loans  1.17%  1.17%  1.16%  1.16%  1.15% 
Non-performing loans/total loans  0.34%  0.35%  0.50%  0.27%  0.31% 
Annualized net charge-offs (recoveries)/average loans  0.06%  0.08%  0.14%  (0.20%)  0.20% 
             

 


FNCB Bancorp, Inc. 
Non-GAAP Financial Measures 
          
Reconciliation of net income to adjusted net income:         
          
  Three Months Ended Year Ended 
  December 31, December 31, 
(dollars in thousands) 2017
 2016
 2017
 2016
 
Net (loss) income $(6,114) $1,524  $147  $6,309  
Deferred tax revaluation charge  8,007   -   8,007   -  
Adjusted net income $1,893  $1,524  $8,154  $6,309  
          
  
Reconciliation of net income per share to adjusted net income per share:       
  Three Months Ended Year Ended 
  December 31, December 31, 
(dollars in thousands) 2017
 2016
 2017
 2016
 
Basic:         
Net (loss) income per share (basic) $(0.36) $-  $0.01  $0.38  
Deferred tax revaluation charge (basic) $0.48  $-  $0.48  $-  
Adjusted net income per share (basic) $0.11  $-  $0.49  $0.38  
          
Diluted:         
Net (loss) income per share (diluted) $(0.36) $0.09  $0.01  $0.38  
Deferred tax revaluation charge (diluted) $0.48  $-  $0.48  $-  
Adjusted net income per share (diluted) $0.11  $0.09  $0.49  $0.38  
          
          
Adjusted return on average assets:         
  Three Months Ended Year Ended 
  December 31, December 31, 
(dollars in thousands) 2017
 2016
 2017
 2016
 
Adjusted net income $1,893  $1,524  $8,154  $6,309  
Average assets  1,162,459   1,108,653   1,137,556   1,098,876  
Adjusted return on average assets  0.65%  0.55%  0.72%  0.57% 
 
 
Adjusted return on average equity: 
  Three Months Ended Year Ended 
  December 31, December 31, 
(dollars in thousands) 2017
 2016
 2017
 2016
 
Adjusted net income $1,893  $1,524  $8,154  $6,309  
Average equity  97,089   94,271   95,056   92,565  
Adjusted return on average equity  7.74%  6.41%  8.58%  6.82% 
 

 


FNCB Bancorp, Inc. 
Year-to-Date Consolidated Statements of Income 
  
 Year Ended 
 December 31, 
(in thousands, except share data) 2017 2016 
Interest income     
Interest and fees on loans $29,821 $27,993 
Interest and dividends on securities     
 U.S. government agencies  3,426  3,557 
 State and political subdivisions, tax-free  49  46 
 State and political subdivisions, taxable  3,809  2,574 
 Other securities  563  545 
  Total interest and dividends on securities  7,847  6,722 
Interest on interest-bearing deposits in other banks  180  33 
   Total interest income  37,848  34,748 
Interest expense     
Interest on deposits  3,521  2,730 
Interest on borrowed funds     
 Interest on Federal Home Loan Bank of Pittsburgh advances  599  595 
 Interest on subordinated debentures  380  625 
 Interest on junior subordinated debentures  300  247 
  Total interest on borrowed funds  1,279  1,467 
   Total interest expense  4,800  4,197 
Net interest income before provision for loan and lease losses  33,048  30,551 
Provision for loan and lease losses  769  1,153 
Net interest income after provision for loan and lease losses  32,279  29,398 
Non-interest income     
Deposit service charges  2,903  2,892 
Net gain on the sale of securities  1,597  960 
Net gain on the sale of mortgage loans held for sale  304  340 
Net gain on the sale of SBA guaranteed loans  79  51 
Net gain on the sale of other repossessed assets  47  - 
Net gain on the sale of other real estate owned  79  49 
Loan-related fees  384  439 
Income from bank-owned life insurance  527  552 
Other    1,305  920 
   Total non-interest income  7,225  6,203 
Non-interest expense     
Salaries and employee benefits  14,161  14,320 
Occupancy expense  2,105  1,777 
Equipment expense  1,815  1,732 
Data processing expense  2,023  1,997 
Regulatory assessments  686  729 
Bank shares tax  800  836 
Expense of other real estate owned  488  409 
Legal expense  128  362 
Professional fees  956  961 
Insurance expense  519  516 
Other operating expenses  4,388  3,906 
   Total non-interest expense  28,069  27,545 
Income before income taxes  11,435  8,056 
Income tax expense  11,288  1,747 
Net income  $147 $6,309 
         
Income per share     
 Basic  $0.01 $0.38 
 Diluted  $0.01 $0.38 
         
Cash dividends declared per common  share  $0.13 $0.09 
Weighted average number of shares outstanding:     
 Basic   16,722,966  16,571,262 
 Diluted   16,740,288  16,572,695 
 

 


FNCB Bancorp, Inc. 
Quarter-to-Date Consolidated Statements of (Loss) Income 
               
 Three Months Ended 
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
(in thousands, except share data) 2017
 2017 2017
 2017
 2016 
Interest income           
Interest and fees on loans $8,073  $7,576 $7,192  $6,980  $7,008 
Interest and dividends on securities           
 U.S. government agencies  860   816  850   900   879 
 State and political subdivisions, tax-free  7   7  12   23   16 
 State and political subdivisions, taxable  993   1,016  978   822   740 
 Other securities  154   166  119   124   114 
  Total interest and dividends on securities  2,014   2,005  1,959   1,869   1,749 
Interest on interest-bearing deposits in other banks  34   24  32   90   19 
   Total interest income  10,121   9,605  9,183   8,939   8,776 
Interest expense           
Interest on deposits  1,008   943  826   744   721 
Interest on borrowed funds           
 Interest on Federal Home Loan Bank of Pittsburgh advances  175   163  130   131   123 
 Interest on subordinated debentures  57   97  114   112   145 
 Interest on junior subordinated debentures  81   77  73   69   67 
  Total interest on borrowed funds  313   337  317   312   335 
   Total interest expense  1,321   1,280  1,143   1,056   1,056 
Net interest income before provision (credit) for loan and lease losses  8,800   8,325  8,040   7,883   7,720 
Provision (credit) for loan and lease losses  283   543  421   (478)  295 
Net interest income after provision (credit) for loan and lease losses  8,517   7,782  7,619   8,361   7,425 
Non-interest income           
Deposit service charges  756   728  728   691   735 
Net gain on the sale of securities  259   367  693   278   - 
Net gain on the sale of mortgage loans held for sale  63   106  110   25   102 
Net (loss) gain on the sale of other repossessed assets  -   -  (10)  57   - 
Net gain on the sale of SBA guaranteed loans  -   23  56   -   - 
Net gain on the sale of other real estate owned  22   -  6   51   20 
Loan-related fees  132   96  65   91   152 
Income from bank-owned life insurance  128   129  135   135   126 
Other    558   265  240   242   263 
   Total non-interest income  1,918   1,714  2,023   1,570   1,398 
Non-interest expense           
Salaries and employee benefits  4,092   3,247  3,298   3,524   3,954 
Occupancy expense  538   394  586   587   476 
Equipment expense  435   474  446   460   455 
Data processing expense  521   506  509   487   475 
Regulatory assessments  189   160  164   173   100 
Bank shares tax  38   252  252   258   90 
Expense of other real estate owned  56   104  288   40   74 
Legal expense  13   23  24   68   77 
Professional fees  294   206  180   276   245 
Insurance expense  134   132  128   125   132 
Other operating expenses  1,494   899  1,065   930   1,085 
   Total non-interest expense  7,804   6,397  6,940   6,928   7,163 
Income before income taxes  2,631   3,099  2,702   3,003   1,660 
Income tax expense  8,745   827  910   806   136 
Net (loss) income  $(6,114) $2,272 $1,792  $2,197  $1,524 
               
(Loss) Income per share           
 Basic  $(0.36) $0.14 $0.11  $0.13  $0.09 
 Diluted  $(0.36) $0.14 $0.11  $0.13  $0.09 
               
Cash dividends declared per common  share  $0.04  $0.03 $0.03  $0.03  $0.03 
Weighted average number of shares outstanding:           
 Basic   16,757,963   16,757,963  16,716,899   16,657,551   16,621,467 
 Diluted   16,774,209   16,777,671  16,736,995   16,670,788   16,621,467 
 

 


FNCB Bancorp, Inc.
Consolidated Balance Sheets
              
  
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands) 2017
 2017
 2017
 2017
 2016
Assets            
Cash and cash equivalents:          
 Cash and due from banks $22,755  $24,881  $24,169  $23,571  $20,562 
 Interest-bearing deposits in other banks  14,991   18,929   1,991   3,154   91,883 
  Total cash and cash equivalents  37,746   43,810   26,160   26,725   112,445 
Securities available for sale, at fair value  290,387   282,037   283,040   288,295   276,015 
Stock in Federal Home Loan Bank of Pittsburgh at cost  2,753   2,450   2,282   2,678   3,311 
Loans held for sale  1,095   147   617   563   596 
Loans, net of net deferred costs and unearned income  770,643   759,489   728,141   715,450   731,279 
Allowance for loan and lease losses  (9,034)  (8,862)  (8,469)  (8,306)  (8,419)
Net loans   761,609   750,627   719,672   707,144   722,860 
Bank premises and equipment, net  10,388   10,482   10,715   10,914   10,784 
Accrued interest receivable  3,234   3,203   2,784   2,950   2,757 
Bank-owned life insurance  30,460   30,332   30,203   30,068   29,933 
Other real estate owned  1,023   1,088   1,183   1,352   2,048 
Other assets   23,610   32,935   31,083   33,414   34,850 
   Total assets $1,162,305  $1,157,111  $1,107,739  $1,104,103  $1,195,599 
              
Liabilities           
Deposits:           
 Demand (non-interest-bearing) $176,325  $162,426  $147,878  $156,901  $173,702 
 Interest-bearing  826,123   820,786   784,872   766,525   841,437 
  Total deposits  1,002,448   983,212   932,750   923,426   1,015,139 
Borrowed funds:          
 Federal Home Loan Bank of Pittsburgh advances  44,968   45,350   44,903   56,632   58,537 
 Subordinated debentures  5,000   5,000   10,000   10,000   10,000 
 Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
  Total borrowed funds  60,278   60,660   65,213   76,942   78,847 
Accrued interest payable  241   244   235   225   242 
Other liabilities  10,147   15,513   12,797   10,107   11,000 
  Total liabilities  1,073,114   1,059,629   1,010,995   1,010,700   1,105,228 
              
Shareholders' equity          
Preferred stock  -   -   -   -   - 
Common stock  20,947   20,947   20,947   20,865   20,807 
Additional paid-in capital  63,210   63,143   63,076   62,841   62,593 
Retained earnings  6,779   13,282   11,517   10,228   8,531 
Accumulated other comprehensive (loss) income  (1,745)  110   1,204   (531)  (1,560)
  Total shareholders' equity  89,191   97,482   96,744   93,403   90,371 
   Total liabilities and shareholders’ equity $1,162,305  $1,157,111  $1,107,739  $1,104,103  $1,195,599 
     

 


FNCB Bancorp, Inc. 
Summary Tax-equivalent Net Interest Income 
               
     Three Months Ended 
     Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
(dollars in thousands) 2017
 2017
 2017
 2017
 2016
 
Interest income           
Loans:             
Loans - taxable $7,736  $7,266  $6,874  $6,643  $6,709  
Loans - tax-free  511   470   482   511   453  
 Total loans  8,247   7,736   7,356   7,154   7,162  
Securities:            
Securities, taxable  2,007   1,998   1,947   1,846   1,733  
Securities, tax-free  11   11   18   35   24  
 Total interest and dividends on securities  2,018   2,009   1,965   1,881   1,757  
Interest-bearing deposits in other banks  34   24   32   90   19  
   Total interest income  10,299   9,769   9,353   9,125   8,938  
Interest expense           
Deposits   1,008   943   826   744   721  
Borrowed funds  313   337   317   312   335  
      1,321   1,280   1,143   1,056   1,056  
   Net interest income $8,978  $8,489  $8,210  $8,069  $7,882  
 
Average balances           
Earning assets:           
Loans:             
Loans - taxable $725,988  $700,729  $682,426  $680,518  $684,225  
Loans - tax-free  41,548   38,109   40,190   43,822   41,081  
 Total loans  767,536   738,838   722,616   724,340   725,306  
Securities:            
Securities, taxable  292,307   290,348   287,133   284,712   270,634  
Securities, tax-free  600   600   1,105   2,571   1,664  
 Total securities  292,907   290,948   288,238   287,283   272,298  
Interest-bearing deposits in other banks  12,215   7,499   12,676   39,520   15,727  
   Total interest-earning assets  1,072,658   1,037,285   1,023,530   1,051,143   1,013,331  
Non-earning assets  89,801   92,603   90,672   92,368   95,322  
   Total assets $1,162,459  $1,129,888  $1,114,202  $1,143,511  $1,108,653  
Interest-bearing liabilities:           
Deposits  $824,680  $792,649  $783,672  $807,981  $775,565  
Borrowed funds  67,476   73,168   72,347   78,306   78,780  
   Total interest-bearing liabilities  892,156   865,817   856,019   886,287   854,345  
Demand deposits  162,135   156,483   152,974   155,010   149,008  
Other liabilities  11,079   10,325   10,633   11,045   11,029  
Shareholders' equity  97,089   97,263   94,576   91,169   94,271  
 Total liabilities and shareholders' equity $1,162,459  $1,129,888  $1,114,202  $1,143,511  $1,108,653  
             
Yield/Cost  
Earning assets: 
Loans:   
Interest and fees on loans - taxable  4.26%  4.15%  4.03%  3.90%  3.94% 
Interest and fees on loans - tax-free  4.92%  4.93%  4.80%  4.66%  4.41% 
 Total loans  4.30%  4.19%  4.07%  3.95%  3.97% 
Securities:            
Securities, taxable  2.75%  2.75%  2.71%  2.59%  2.56% 
Securities, tax-free  7.33%  7.33%  6.51%  5.42%  5.83% 
 Total securities  2.76%  2.76%  2.73%  2.62%  2.58% 
Interest-bearing deposits in other banks  1.11%  1.28%  1.01%  0.91%  0.48% 
   Total earning assets  3.84%  3.77%  3.66%  3.47%  3.53% 
Interest-bearing liabilities:           
Interest on deposits  0.49%  0.48%  0.42%  0.37%  0.37% 
Interest on borrowed funds  1.86%  1.84%  1.75%  1.59%  1.70% 
   Total interest-bearing liabilities  0.59%  0.59%  0.53%  0.48%  0.49% 
   Net interest spread  3.25%  3.18%  3.13%  2.99%  3.03% 
 Net interest margin  3.35%  3.27%  3.21%  3.07%  3.11% 

 


FNCB Bancorp, Inc.
Asset Quality Data
             
          
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands) 2017 2017 2017 2017
 2016
At period end          
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $2,578 $2,642 $3,681 $1,922  $2,234
Loans past due 90 days or more and still accruing  -  -  -  -   -
 Total non-performing loans  2,578  2,642  3,681  1,922   2,234
Other real estate owned (OREO)  1,023  1,088  1,183  1,352   2,048
Other non-performing assets  1,900  1,900  1,900  2,006   2,160
 Total non-performing assets $5,501 $5,630 $6,764 $5,280  $6,442
             
Accruing TDRs $9,299 $9,283 $9,306 $8,775  $4,176
             
             
For the three months ended          
Allowance for loan and lease losses          
Beginning balance $8,862 $8,469 $8,306 $8,419  $8,490
Loans charged-off  310  377  465  297   572
Recoveries of charged-off loans  199  227  207  662   206
Net charge-offs (recoveries)  111  150  258  (365)  366
Provision (credit) for loan and lease losses  283  543  421  (478)  295
Ending balance $9,034 $8,862 $8,469 $8,306  $8,419
             

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Source: FNCB Bancorp, Inc.